KHALED ALMAEENA



Time and again articles have been written about the greed of Saudi businessmen and their callous attitude or approach to the consumer. The writer Najib Alzamil pointed out the dangers of such irresponsible writing and advised that it is in the best interests of society not to reply to them. The aim of many of these people is to have rebuttals which are then placed on social media in order to gain free publicity.



Having said that, let me be frank and say that as an advocate of free enterprise, I believe our economy will grow faster if bureaucratic restrictions are removed. Despite the government’s programs to improve the business environment and to raise the percentage of the contribution of the non-oil sector to the economy, we are not progressing at the pace that most people want. And that again is the total failure of the government’s bureaucratic machinery to rise to the occasion. I strongly believe that young Saudi businessmen and women are more advanced in vision, thought and ambition and have a greater sense of community service than many of their counterparts in government departments. I am not doubting the sincerity of government employees, but the private sector has a mission while for bureaucracy it is often just a job. Therefore, higher authorities should be made aware of the directive of the Custodian of the Two Holy Mosques King Abdullah that all should share in the Kingdom’s wealth and economy.



However, to do this by forced Saudization is not the right approach. What is needed is a truly conducive business environment that encourages young Saudi entrepreneurs to establish companies and compete for contracts. And you need laws for this.



As already exists in some neighboring countries, there should be a law to award 10 to 15 percent of government contracts to small and medium enterprises (SMEs).



Ministry procurement agencies should ensure that purchasing and consulting contracts are given to these companies. Companies where the State holds more than a 25 percent stake should place at least 10 percent of their contracts with SMEs.



Facilities should be provided to SMEs, and banks which usually give many large-scale loans to “ favored customers” should be mandated to finance loans for SMEs. Government development funds should also have the vision to finance SMEs. These companies are not asking for charity and it is not just about money but about involvement in the building of the Saudi economy. Helping SMEs will ensure that there are more stakeholders in our society. As one young businessman told me: “We have more than two companies in this country”.



It is the right of these young company owners to participate in building the national economy. This is trickle-down economics. International companies should be told that they should deal with this sector of Saudi business so that its multiplying effect and the prosperity it spreads will be far-reaching. The Ministers of Commerce, Planning and Labor, along with the heads of relevant government departments should sit with owners of SMEs and listen carefully and with due attention to their situation. Many sad stories will emerge.



I know many young men and women struggling in business. They all have the potential for success. However, contracts fly over their heads due to many factors including nepotism and corruption. Yet they persevere because they believe in their contribution to the national economy. Many conferences, symposiums and meetings have been held to address these issues but the reality on the ground is different. Clear laws to improve the competitiveness of these small companies and pushing for their inclusion in government and public contracts, and facilitating their administrative and financial procedures are needed immediately.



What is also required is to stop those writers who attack the business community. They can best serve the country by focusing on the bureaucracy’s failure to provide the right support to ambitious young Saudis in the business world. 



– The writer is Editor-at-Large. He can be reached at [email protected] and followed on Twitter: @KhaledAlmaeena